Airtel Unveils – “Win Customers for Life” Strategy

Airtel Win Customers for life StrategyAt Analysts Conference, Bharti Airtel Management shared Color on its new Strategy – Win Customers for Life. This is developed on its underlying five-pronged strategy: 1) better go-to-market excellence; 2) voice pricing – no need to undercut; 3) data pricing in such a way that data ARPU grows; 4) focus on data and digital services (m-commerce); and 5) war on waste, i.e manage costs better. Subscriber growth has accelerated in the past one year, which is ahead of competition vs. previous years. However, ARPU increase will be led by subs taking 3G and 4G.

Airtel believes networks will be a key differentiator, especially on data. The company plans to expand network coverage further. It is also expanding internet experience and market visibility – so capex may go up in line with demand.

Airtel has 3G in nearly all circles. It notes that it can, therefore, go after data opportunity more strongly and also is able to convert variable costs (from ICR) to fixed costs now. 3G is currently 33% of 2G coverage for Airtel.

As Reliance Jio launch date nears, Airtel has already made its move to sabotage the 4G Hype and also offer unmatched Mobile Data experience so that customer remain on their platform as well as pay the premium for the service offered.